AN ACT ALLOWING AN INCREASE IN FOREIGN EQUITY PARTICIPATION IN PREFERRED AREAS OF INVESTMENT AND FOR OTHER PURPOSES

• Number: Presidential Decree No. 1892
• Sections: 4

Preamble

WHEREAS, it is the policy of the State to encourage and

promote foreign investments in the various economic activities of the country

provided their participation is consistent with national goals and policies;

WHEREAS, the accelerated entry of foreign investments at

this time of economic difficulty will contribute to the achievement of economic

goals;

WHEREAS, there is an increased interest on the part of

foreign investors to enter into joint ventures with Philippine partners

particularly in preferred areas of investments as defined in the Omnibus

Investments Code, as amended;

WHEREAS, it is in the best interest of the State to relax

the nationality requirements provided in the said Code for a limited period in

order to facilitate the entry of foreign investments;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby

order and decree:

Section 1

SECTION 1. Notwithstanding; the provisions of Article 34(1)

of Presidential Decree No. 1789, as amended, otherwise known as the Omnibus

Investments Code, the nationality requirement of at least 60% Philippine

nationals for non-pioneer industries to be entitled to registration under Book

One of the Omnibus Investments Code shall be suspended for a period of one (1)

year; Provided, that foreign investors fulfill the other requirements

provided in the aforementioned article, particularly Article 34(1) (b), and such

other conditions provided in Book One of the Omnibus Investments Code; and

Provided, further, that foreign investors will not engage in activities reserved

by the Constitution-and existing laws to Philippine nationals and corporations

and other juridical entities owned and controlled by Philippine nationals.

Section 2

SEC. 2. Existing non-pioneer enterprises registered under

Book One of the Omnibus Investments Code may increase their foreign equity in

accordance with and subject to the conditions of the preceding Section.

Section 3

SEC. 3. This Decree shall take effect immediately and shall

remain in force for a period of one (1) year from effectivity hereof, provided

that upon expiration of the one-year period, the suspended provisions of the

Omnibus Investments Code shall resume to be in force and effect without in any

way affecting the status of investments approved during the suspension of the

provision.

Done in the City of Manila, this 4th day of December, in the year of Our

Lord, nineteen hundred and eighty-three.